A little-known credit card, "28 degrees", by GE Finance, is a fantastic card for travellers -- it offers foreign transactions with no surcharges.

It's unique on the Australian market -- the only credit card offering foreign purchases and ATM cash withdrawals at the MasterCard wholesale exchange rate, with no bank fees tacked on.

Typically, credit cards charge 3 - 3.5% on top of any purchase made in foreign currency ($30 - $35 on a $1,000 purchase), and charge $4-$5 plus 2-3% for an ATM cash withdrawal overseas ($24 - $35 for a $1,000 withdrawal).

However, the GE Finance 28 Degrees MasterCard (previously known as the Wizard Clear Advantage) charges no surcharge for international transactions, making it a money-saver for both travel and online shopping at foreign websites.

The card interest rate is aligned with 'reward' cards -- 20.24%, which suggests that GE Finance hopes to earn interest on carried balances to cover the international exchange fees it absorbs.

That being said, there is no annual fee -- something that is rare amongst reward cards.

The only other card on the market that Australian Business Traveller is aware of that offers no-fee international purchases and ATM withdrawals is the NAB Gold Visa Debit card, however that has a $10 per month fee unless you deposit $5,000 into it each month.

Of course, prepaid travel money cards are another way to do fee free foreign purchases and low-fee overseas ATM withdrawals, but even they have a fee to purchase the card, load money on to the card, and withdraw money at ATMs -- all of which are free on the 28 degrees MasterCard.

The best way to make use of the 28 degrees MasterCard from a money-saving perspective is to treat it like a prepaid travel money card -- deposit money into it before spending it, so the card is in credit, and spend only your own money, without dipping into debit.

For example, you could pay $3,000 into the card before leaving on a trip, spend $1,500 on hotel accommodation and withdraw three lots of $500, and you wouldn't have to pay any interest on it, as you'd be spending your own money.

The only fees you would risk incurring while overseas would be fees directly charged by ATM operators (which can be considerable -- Australian Business Traveller staff have been stung by an undisclosed $15 fee charged by a English-language ATM in the lobby of a five star hotel in China).

Unlike travel money cards, which we've already exhaustively compared, you wouldn't lose 1% of the amount you paid into the card. The 28 degrees card is simply a credit card payment, not a "travel money card reload".

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About danwarne

Dan is a tech enthusiast who frequently qualifies for enhanced airport security screening due to the number of cords and gadgets stuffed into his cabin bag.

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Not only does it not charge you any overseas ATM usage fee there’s also no conversion fee.

- “As a NAB Gold Banking customer, we don't charge fees when you use overseas ATMs (just check for the PLUS sign) or for transactions in foreign currencies.”

- “If you use your NAB Visa Debit card overseas the NAB fees are: $4 per withdrawal at an overseas ATM, $1 per balance enquiry at an overseas ATM, 2% transaction fee for all foreign currency transactions (calculated in Australian dollars using Visa's exchange rate at the time).

These NAB fees don't apply if you have a NAB Gold Banking account, NAB Flexiplus Mortgage, NAB Choice Package or Private Tailored Package.” I may sound like a NAB employee (I’m not associated with NAB in any way aside from being a customer), but the benefits don’t end there. You also get the following:

- NAB Gold Extended Warranty Insurance (up to 12 months extra warranty) The fact that this is a debit card makes the offer especially attractive to those who may not be eligible for a credit card (or simply don’t want one). There’s one additional benefit I find handy:

- “You can attach a second NAB Visa Debit card to your account at no extra charge. This lets a second person access the account with their own card. If you have a NAB Gold Banking account, you can attach two additional NAB Visa Debit cards at no extra charge.” This additional card can be in your own name. It’s not an additional card like you might get on a credit card (with the same number), it’s a card with its own card number.

What this means is that you can have a backup card (kept separate from your main card) which is fully functional even if you have to report your “main” card lost or stolen. As you can see, I do love this account.

28 degrees Mastercard sounds great! Not mentioned in this article, but doesn't GE convert most transactions twice (first into USD then into AUD), with two consequent conversion losses? It would seem that every transaction then would cost 3% more than a similar purchase involving only one currency conversion (3% being the difference between the official rate and the best rate you can get from a converting agency, therefore two such transactions would be 6%?). Would appreciate anyone else's view on this. Cheers

I used 28 degrees card for a month in US and Canada in Dec/Jan 2012. I used it in stores, hotels, restaurants etc and since coming home, have used it for online overseas purchases. There have been NO currency conversion charges on any transactions. The card is an absolute gem, and exactly as advertised. My daughter used her card in Bali and Thailand - again, no conversion charges at all. Online application is quick and easy. Highly recommended..

Have used 28Degrees for many years with great success, and continue to do so when purchasing over the internet in foreign currency. But since they have introduced all the withdrawal/conversion fees from January 2014 I have changed systems

I am now using CITY BANK PLUS (not a Credit card, it is a VISA Debit card). No withdrawal fees or charges OS. Have now used it extensively and made sure the statements were clear of fees and charged the most competitive exchange rates. Am very Happy. Highly recommended

I would really like to see a comparison of exchange rates ACTUALY used on a certain date between all the creadit card/bank combination. I suspect that Citibank plus would win